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Finance is the life - blood of any organisation and Lions Club is no exception to it. The Club which is systematic in its dues collection process gets a definite edge over the club which is haphazard. This is so because the club which can plan its cash flow with some certainty about the timing and amount of dues, can plan its year with greater ease and accuracy as compared to the club which is bot sure about the timing or the amount of the dues. This makes the process of dues collection a responsibility not only of the treasurer but of the secretary or president, the Finance Committee and every Principal Officer of the Club. This paper explains the various aspects of dues collection and suggests an ideal dues collection process.

Not any and every amount received by the Club may be classified as "dues". The term "dues" has a very narrow and restrictive connotation under the Lions Constitution. Let us refer to the provisions of Standard Form Constitution and Bye-Laws, which set of Constitution has been adopted by most of the clubs. The provisions regarding dues and fees are contained in Article IV, Section A of the said Article states that each new reinstated and transfer member shall pay an entrance fee of $...... which fee shall include the current association entrance fee and be collected before such member is enrolled as a member of this club and before the Secretary may report such member to Lions Clubs International; provided, however, that the Board of Directors may elect to waive all or any part of the club portion of said entrance fee as to any members granted membership by transfer or reinstatement within 6 months of termination of his/her prior Lions Club membership.

Section B further states that each member of the Club shall pay the following indicated regular annual dues which shall include an amount to cover current international and district (Single or sub and multiple) dues (to defray the subscription price of the LION Magazine, administrative and annual convention costs of the associations and similar district costs) and shall be paid in advance at such times as the Board of Directors shall determine :-

1. Active 2. Member at Large

3. Honorary 4. Privileged

5. Life

The treasurer of the club shall remit international and district (single or sub and multiple) dues to the parties, and at the times, specified in the respective International and District (single or multiple) Constitution and Bye-Laws.

This club may require any member to pay club meeting luncheon costs in advance of any luncheon but such costs shall not be assessed as a part of regular annual dues. No dues, fees or assessments in addition to those set forth herein may be levied on, or required of, any member by this club, its board of directors or any officer or member of the club.

1. The term "dues" means and includes the following :

1. Annual dues, which includes International dues, Multiple dues, District dues, the subscription to The LION Magazine, administrative and convention costs of Lions International, and similar district costs.

1. The term "dues" is a very restrictive one and limits itself to only above stated items. No fees or charges in addition to these state in para (1) above can be levied by the club. The club may collect the cost of dinner in advance from the members, but such contribution cannot be termed as "dues".
2. International per capita and convention fund tax :

Each Lions Club is billed for international per capita dues on January 1 and July 1 each year. The billing is made on the basis of MM & A reports of November and May respectively, regardless of how members are classified i.e. whether active, member at large, honorary and privileged. The dues are payable by January 15 and July 15, and are considered delinquent if not paid within 60 days from the date of billing.

3. Reinstated and transfer member :

The amount due from reinstated member is the semi annual per capita amount of the member. It is not prorated. The charges for transfer member are also same. If more than 6 months have lapsed between transfer and reinstatement, this provision does not apply.

4. New Member :

The international billing is for entrance per capita dues on a prorated basis + entrance fees + semi-annual convention tax which is not prorated.

5. District and Multiple dues :

The clubs are billed for district and multiple dues by the District Cabinet Treasurer.

6. Membership of a member may be forfeited if he fails to pay his dues within 60 days after receiving of a written notice thereof by the Secretary.
7. A club may be placed in status quo if it fails to pay the dues within 90 days of the bill.
8. Amount of "dues":

1. International Entrance Fees

Charter Member US$ 30.00

New Member US$ 25.00

Transfer Member US$ 20.00

Reinstated Member US$ 9.00

Life Member US$ 300.00

(b) International Dues US$ 18.00 per capita

2. District Dues,Multiple dues,LCCI Contribution, PST Seminar Fees and cost of Directories are billed by cabinet Treasurer.

1. When payable :

a) International dues : within 60 days of receipt of the bill.

b) Multiple dues : Before 30^th Sept. and 28^th Feb.

c) District dues : Before 10^th Sept. and 10^th Feb.

2. How much dues should be collected ?

1. The Secretary/Treasurer should send a bill of dues to the members in the month of July and December for 1^st term and 2^nd term. Progress report should be prepared after one month of despatch of the bills to know the status of outstanding receivables.
2. The members who have not paid dues till the Progress Report should be contacted personally or over phone and requested politely that the club dues are outstanding. Regular follow-up should be made to ensure dues collection.
3. If inspite of the reminder, dues are not received, the secretary should send a written reminder. The letter should be warded courteously but should explain the Constitutional provisions in the event of non payment of dues.
4. The key office bearers may even plan a visit to the member whose dues remain outstanding. This is so because it gives an opportunity to the office bearers to come closer to the member and discusses things with him, at the same time ensuring collection of dues.
5. During the visit of the office bearers of the club, stress should be laid on asking the member to attend club meetings and involve himself in the Projects. This is so because a member who takes active participation in the club seldom keeps his dues outstanding. Involvement automatically ensures dues collection.

Defining Expenditure

As with income, when defining expenditure you must realise that it is different from cash or bank payments. Expenditure could be in both cash or non cash form. For example, the following expenditure items are not in the form of cash:

• Writing off a bad debt
• Incurring charges that will be paid for at a much later stage
• Depreciation of a fixed asset.

You also need to be sure that not all money paid out is necessarily expenditure. For example, if a fixed asset is purchased, then this will not constitute expenditure to the Club. Again, more on this is available by looking at the module on managing your assets. Another example of spending that is not expenditure, is when money is invested in an interest sharing account or stocks of some description.

Loosely, expenditure is that cost to a Club that reduces its value. In other words, it is spending that, although quite necessary, will be a sunk cost leaving nothing behind. When a fixed asset, such as a new computer, is purchased, then it is not expenditure. Indeed, the expenditure on a fixed asset will be incurred when you start to depreciate its value.

Expenditure categories that might exist are:

• Office supplies such as stationery, postage and photocopying
• Utility costs such as electricity
• Wages and Salaries
• Maintenance of buildings
• Bank charges

Defining Surplus and Deficit

This is simple.

A SURPLUS occurs when your income exceeds your expenditure.

A DEFICIT occurs when your expenditure exceeds your income.

Each time a deficit occurs, it reduces the net worth of a Club while surpluses add to them.

• Remember that in the short term it is more important to monitor your cash and bank situations than income and expenditure. Consequently, you only need to create such a statement, at most, once a month. If your time is too scarce to keep such a statement regularly updated, then such a statement is only needed when you have to give a treasurers report and at the end of each financial year.
• Try and create Income categories that accurately reflect where income comes from and is easy for a novice to understand.

• Create Expenditure categories that reflect what expenses are incurred and are materially important. If, for example, postage is a significant expense item, then give it its own category, otherwise incorporate it into some other category such as administration costs.

• Balance Sheets are used to give an indication about what the Club is worth.

As stated at the start of this module, a balance sheet will give an indication about what your Club is actually worth. To achieve this, it will be broken down into the following; Fixed Assets, Current Assets, Current Liabilities and the Financed By.

These represent those items owned by the Club that form a permanent features. Examples are

· any premises owned (not rented!!)

· Computer

· Typewriter

· Furniture

· Ambulance

they must appear in the balance sheet at value rather than cost. In other words, they need to be valued after taking into account depreciation. More on this is available in the module on managing fixed assets.

These are assets that are not a permanent feature of the business. The most common for a charity will be money kept in a bank account. Examples are

· stock of materials

· debtors - money owed to the Club

· member subscriptions overdue

· money at bank

· cash in hand

Creditors

These are sometimes referred to as current liabilities. Creditors are people or other Clubs that you owe money to. Often the expenses have already been incurred but not paid for. What you are left with is a Creditor. Examples of these are

· bills still outstanding e.g. electricity or wages due

· suppliers for stocks

This now represents the other side of your balance sheet.

Opening Accumulated Fund plus Surplus equals current or closing accumulated fund

Consequently, your current accumulated fund is a statement of how the Clubs assets are financed.

When your Lionistic year starts, you will have an opening accumulated fund as the single figure representing the financed by part of your balance sheet.

If the Secretary/Treasurer and the principal officers of the club understand the concept of dues properly, follow-up regularly and keep the members actively involved, the dues collection process can become very smooth and easy.

Accounts should be maintained properly and audited before the September of the subsequent term , and copies submitted to the Charity Commissioner, the District and Lions International.

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